AUSTIN, Texas–(BUSINESS WIRE)–June 10, 2024–
Palladius Capital Management (“Palladius”), a vertically integrated real estate investment management firm focused on pursuing multifamily, student housing, hospitality and select thematic investment strategies, today announced the acquisition of The Luxx, bringing the firm’s residential investment activity along the Austin-San Antonio I-35 corridor to more than $170 million over the past 12 months. Palladius has extensive experience investing along the I-35 corridor, having acquired more than $550 million in real estate in the region since 2014.
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The Luxe (Photo: Business Wire)
The Luxx is a 694-bed, 220-unit, full-amenity student housing community ideally located about one mile from the University of Texas at San Antonio (UTSA) academic center. The property was built in 2014 and offers fully furnished units with equal bed/bath ratios, in-unit washer/dryer, and walk-in closets. It also boasts top-of-the-line amenities, including a Las Vegas-style pool, study spaces, volleyball court, fitness center, dog park, and outdoor grills. The property is just 10 minutes from UTSA and has a private stop on one of UTSA’s shuttle routes. Additionally, The Luxx offers easy access to downtown San Antonio via I-10 and Austin via I-35.
Palladius’ capital improvement plan for The Luxe includes carrying out minor interior unit renovations as well as a more comprehensive renovation program for the community’s common areas. Interior unit renovations will include new stainless steel appliances and various bathroom improvements, while common area upgrades will focus on the fitness center, pool, dog park, courtyard and clubhouse.
“We are excited to acquire such a well-located property on attractive terms in a market we know well, and look forward to leveraging our operational expertise to enhance the property’s value and provide a great living experience for residents,” said Nitin Sheksal, CEO of Palladius. “We believe strongly in the long-term prospects of both the student housing asset class, particularly at leading public universities in high population growth states like Texas, and the I-35 Innovation Corridor, where we have strategically deployed capital over the past decade. We look forward to expanding our relationships with new capital partners as we advance our student housing strategy.”
UTSA has recorded enrollment growth of approximately 22% over the past decade and has announced a strategic plan to increase total enrollment to 45,000 by 2028. This reflects an increase of more than 10,000 students compared to total enrollment in the 23/24 academic year, which should further increase demand for the type of high-quality student housing that The Luxx provides.
“Luxx epitomizes the strong foundation we look for in a student housing asset and is located in a market where we have been very active, acquiring over 2,000 beds in the past two years,” said Jaime Hinojosa, senior managing director and head of asset management at Palladius. “Ideally located just steps from UTSA’s campus, the asset has enjoyed high occupancy rates and serves an on-campus student population that is expected to explode in numbers. We are confident that demand for high-quality housing will continue to grow in the coming years.”
In addition to equity investments, Palladius’ debt platform has been very active, lending over $90 million to assets along the I-35 corridor in the past 12 months. The company’s debt activity along the I-35 corridor includes multifamily, industrial, hospitality and retail properties.
About Palladius Capital Management
Palladius is a diversified real estate investment management firm leveraging institutional best practices, technology and operational expertise to drive value creation for institutional and private investors. Led by a veteran team in commercial real estate, finance and corporate operations, Palladius, through its affiliates, pursues value-add and core-plus strategies targeting multifamily, student housing, hospitality and other thematic investment strategies. Palladius also makes debt investments through the Palladius Income Fund, a privately held REIT. Based in Austin, Texas, Palladius manages and operates approximately $800 million in properties across the United States and is committed to building a highly progressive platform that promotes diversity and inclusion. For more information, please visit www.palladius.com.
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Keywords: United States North America Texas
Industry Keywords: Construction and Real Estate Finance REITs Professional Services Other Education Colleges Other Construction and Real Estate Education Homebuilding and Real Estate
Source: Palladius Capital Management
Copyright Business Wire 2024.
Released: 2024/06/10 8:00 AM / Disc: 2024/06/10 8:00 AM
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Copyright Business Wire 2024.
